Research On Governance Of Corporate Social Performance

A few years ago appeared in China Wanke and other enterprises the donation issues, food safety issues such as melamine of Sanlu milk powder. These companies perhaps have the most advanced management and governance structure in China, while they demonstrated the inadequacy of corporate social responsibility (CSR), and made some of the inherent theory and conclusion of social responsibility seemed difficult to explain. From the description of this reality, we found that even in those companies with relatively sound corporate governance such as Vanke, the motion to fulfill social responsibilities can not depend entirely on the enterprise level. Since entering the 21st century, a number of adverse events have occurred in Foxconn and the Honda, showing that there exist significant gaps between China and developed market economies in the corporate governance environment and social responsibility environment. There are so many deficiencies for the market, the rule of law and function of the government. Under such condition, the level of corporate social performance depends largely on the degree of external and internal corporate governance environment. This is the main reason that author analyzed corporate social performance (CSP) from the perspective of corporate governance.The main starting point of this study is based on two problems emerged fom the study of CSR. The first problem is the implementation subject of CSR, the second problem is the utilitarian orientation in the study of CSR. The issues of the implementation subject of CSR originated from the progress in theoretical research of stakeholders. Some scholars confused the subject of corporate governance, and those non-shareholder stakeholders were included into implementation subject of governance. Utilitarian orientation issue of corporate social responsibility, emerged from the analyzing method of researchers. When analyzing the dynamics of corporate social responsibility, researchers confused the influencing factors of economic profit and social performance. They attributed the economic performance to stakeholder "co-governance", making corporate social responsibility behavior utilitarian, such as research on social responsibility competitiveness, the relationship between corporate social responsibility and competitive advantage, the relationship between corporate social responsibility and economic interests. The main reason for these problems came from the reality that the relationship between the mainstream theory of business and the theory of corporate social responsibility were not clear. In fact, corporate social responsibility can be integrated into the mainstream theory of business, and this is the main starting point for this paper.In the West, research on corporate governance and social responsibility revealed a trend of convergence and aggregation. Compared to foreign countries, the governance structure and the environment of domestic enterprises are completely different. The contractual environment changed in different regions and industries, and we should analyze what are the factors pushing CSR responses, and how to promote CSR among the daily operation and management. This article will focus on the following aspects in-depth study:(1) A broad research framework on CSP, which theoretically discusses the principles of corporate social responsibility, the channel between social responsiveness and corporate which were linked effectively through the promotion of corporate governance and stakeholder management; (2)Under different external governance environment, what is the best way for Internal Governance Mechanism to achieve effective stakeholder's management combined with resources and strategy? (3) What is the pathway of corporate social performance affecting economic interests? Whether the implementation of corporate social responsibility influence economic benefits or impact the enterprise's competitiveness directly or indirectly; (4) A major purpose of this study is to adopt more appropriate methods, using secondary data rather than the questionnaire results, so as to get more scientific results.This study obtained a dynamic CSP model based on theory and empirical analysis in first step. By proposing such dynamic conceptual CSP model, the author confirmed that the content of social responsibility changed in different governance structures and different contractual environment, the meaning of social responsibility is dynamic in different stage of development. Secondly, this paper made empirical analysis on various factors influencing CSP from the aspects of company's internal governance structure and external environment. Furthermore, this paper considered CSP based on enterprise resources, size and business strategies; Once more, this paper conducted theoretical and empirical analysis on relationship between corporate social performance and the financial performance. Based on the research on the extent of corporate social performance affecting financial performance, this paper used a new empirical method to prove their pathway combined with capital market theory.Through this work, author concluded that:(1) Different developing stages of company and market development phase determine the level of corporate social performance, particularly in different countries with different corporate governance environment; (2) Emphasize oversight mechanizm for corporate governance by internal and external institutional environments. Among the institutional environments, Employee supervisors and independent directors belong to internal oversight mechanism; legal, stakeholder activity, government regulation belong to external oversight mechanisms; (3) Dilute the nominal control of stakeholders, because it will lead to unclear responsibilities and rights, and establish a complete and strict regulatory mechanisms and legal environment, and provide a good external governance environment. (3) The dominant position of state-owned shareholders of governance should be strengthened. Under such circumtance, the key point is to ensure power and responsibility clearly, and improve the external governance environment, play a true, and this is the fundamental restructuring approach of state enterprises. (4) Establish a sound system of professional managers. The problem for state-owned enterprised is not the absence of the actual owner, but the lack of professional manager system and trust system.Overall, the study of corporate social performance breakthroughed those old ideas and researchs on CSP, and achieved the following achievements:(1) Theoreticaly explained clearly the implementation subject of corporate social responsibility, and criticized the utilitarian tendencies in the research of corporate social responsibility. Furthermore this article established a comprehensive analytical framework of corporate social performance from the perspective of governance environment in critical studies. (2) With the famework of social performance, this paper solved the confusion situation caused by "common governance theory" which advocate that stakeholders joining the ranks of corporate governance. Through this study, author brought in corporate social responsibility to the mainstream theory of the firm. (3) Enterprise itself performed in different stages, while the corporate governance environment is changing continuously. Measuring corporate social responsibility from the perspective of dynamic study is an innovative in terms of content. (4) As to the relationship between corporate social performance and economic performance, this article used more objective data to ensure scientific, on the other hand rejected the traditional empirical method. This article used event study and other method to prove that corporate social performance of the enterprise does not bring direct economic benefits, but an indirect effect.